The Michigan Indigent Defense Commission (MIDC) is seeking public comment on the minimum standards now under consideration. Those standards involve education and training, the initial client interview, experts and investigators and counsel during critical court appearances.

Deadline to comment is March 9.

Once the public comment period has ended, LARA will make a decision on approval. If the standards are approved, a 180-day clock for counties to submit their local operational plans will begin.

NOTE: Implementation of those plans does not have to begin until the plans are approved and any additional costs are paid for by the state.

The Michigan Supreme Court conditionally approved these standards, but had constitutional concerns regarding their oversight of the commission. Legislation passed last year addressed this concern by moving the commission from the judicial branch to the state Department of Licensing and Regulatory Affairs (LARA) to ensure MIDC is independent of the judiciary. Due to this move, MIDC was required to resubmit the proposed standards to the LARA for approval, which it did the week of Feb. 6.

Comments should be submitted by March 9, 2017, to comments@michiganidc.gov. All comments will be posted on the MIDC website.

In an effort to address the more than $11 billion in unfunded accrued OPEB (Other Post-Employment Benefits) liabilities for local governments across Michigan, the House is reviewing a package of bills aimed at changing the insurance benefits for government retirees. The 13-bill package, put forth by Speaker Kevin Cotter (R-Isabella), creates the Local Government Retirement Act and amends all the relevant statutes to require compliance with the main bill, House Bill 6074.

Of Michigan’s 83 counties, 26 do not offer OPEB, while another six are currently at least 80 percent funded in the benefits, which would make them exempt from some of the requirements in the act. The remaining 51 counties have an accumulated unfunded liability of approximately $3 billion.

Breakdown of counties by OPEB commitments
(Updated 1/3/17 with corrected figures for Livingston County)

The six counties above the 80 percent mark — Barry, Cass, Clinton, Macomb, Oakland, Ottawa — would be exempt from the changes to current employee and current retiree OPEB benefits, regardless of whether or not the employees are currently vested in the benefit. These counties, however, would still be subject to the provisions for Medicare eligible retirees, Medicare supplemental policy contributions and for all new hires as detailed below.

The main provisions of the package include:

• Requires an “unvested” retiree to contribute a minimum of 20 percent toward the cost for post-employment insurance and caps a local government’s contribution to a maximum of 80 percent.
• Limits local governments’ contributions toward OPEB benefits for all new hires to a maximum of 2 percent of the employee’s base pay.
• Requires all retirees to be on Medicare when eligible.
• Caps local government contributions to Medicare supplemental policies to 80 percent of the cost of the policy.
• Prohibits a local government, regardless of whether or not it meets the 80 percent funded threshold, from providing insurance benefits to retirees who are eligible to participate in a medical benefit plan or retirement health benefit plan offered or provided by an employer other than the local government.
• Directs that “vested” employees will be exempt from changes in the act. To determine whether or not an employee is vested/exempt, the package states that if a collective bargaining agreement entered into before act’s adoption clearly and expressly confers a fixed, unalterable right to a vested retirement health benefit for an unambiguous duration, then the act does not impair that vested retirement health benefit for that duration.

After consulting with the Executive Committee of MAC’s Board of Directors and several county administrators, MAC took the position of “support in concept” and testified before the House Local Government Committee on that theme on Dec. 1. MAC noted in its testimony our appreciation for providing local governments with some assistance in tackling this looming obligation by taking this issue off of the bargaining table and for the state diverting legal challenges to the proposed law from the local governments that seek to amend the benefits for unvested employees and retirees.

MAC also conveyed concerns with the approach, including:

• Many Michigan counties already have acted to change these benefits for current employees and for new hires. This should be recognized by the state.
• Local control has been, and continues to be, a vital component of good governance, but the state needs to “untie the hands of the county so they have the tools necessary to address the issues.”
• This approach focuses only on fixing local government budgetary issues by going after the costs associated with the employees that provide the public services we all rely upon. MAC would like to see the Legislature actually address the revenue side of the equation.

In addition to the concerns outlined above, MAC will be working with the Legislature on language changes and certain provisions that need to be addressed for specific counties. We anticipate additional hearings next week. For more information, contact Deena Bosworth at Bosworth@micounties.org

Michigan Republicans expanded their already large margin in county commissioner seats in the Nov. 8 General Election, a MAC review of unofficial results shows. The GOP now holds 432 seats, with one vacancy in Ontonagon County still to be filled. That’s up from 396 seats after the 2014 elections, for a net gain of at least 36 seats. Democrats fell to 182 seats, while independents and third-party members hold 7 seats. Republican majorities will sit on boards governing 63 of Michigan’s 83 counties; Democratic majorities will control 19 boards, while the Keweenaw board does not have a partisan majority. Partisan control shifted in five counties due to election results:

• Arenac (D to R)
• Clare (R to D)
• Isabella (D to R)
• Keweenaw (D to no partisan majority)
• Lake (D to R)

Of the 622 commissioners in 2017, 160 will be new to the office, not counting the vacancy in Ontonagon. The turnover rate of 26 percent is consistent with historical results. Republican-majority counties: Alcona, Allegan, Alpena, Antrim, Arenac, Barry, Benzie, Berrien, Branch, Calhoun, Cass, Charlevoix, Cheboygan, Chippewa, Clinton, Crawford, Dickinson, Eaton, Emmet, Grand Traverse, Gratiot, Hillsdale, Houghton, Huron, Ionia, Iosco, Isabella, Jackson, Kalkaska, Kent, Lake, Lapeer, Leelanau, Lenawee, Livingston, Luce, Mackinac, Manistee, Mason, Mecosta, Menominee, Midland, Missaukee, Monroe, Montcalm, Montmorency, Newaygo, Oakland, Oceana, Osceola, Oscoda, Otsego, Ottawa, Presque Isle, Roscommon, St. Clair, St. Joseph, Sanilac, Schoolcraft, Shiawassee, Tuscola, Van Buren, Wexford Democratic-majority counties:  Gogebic, Ontonagon, Iron, Baraga, Marquette, Alger, Delta, Muskegon, Kalamazoo, Ingham, Washtenaw, Wayne, Macomb, Genesee, Saginaw, Bay, Gladwin, Clare, Ogemaw Click here to see a larger version of the partisan-control map.

MAC Executive Director Tim McGuire used an appearance on “The Big Show” with Michael Patrick Shiels to make the case that only new revenue will propel the state out of its roads crisis.

“”Do we want dirt roads? … The point is, if you are going to fix the roads, you have to raise revenue. … We have to raise some revenues to pay for the roads. It’s just gotta be done,” McGuire said.

MAC’s Board of Directors, made up of county commissioners from across the state, has long supported a tax increase to generate the new dollars necessary to jump-start maintenance on our crumbling roads.

The Michigan Department of Treasury reports that liquor tax distributions to counties will decline to $49.88 million in fiscal 2016, from $73.75 million in fiscal 2015. The 4 percent liquor tax that gets distributed to counties across the state is set to expire at the end of 2015. Back in 2008, the Legislature refinanced the Cobo Hall facility in Detroit and extended the liquor tax. As part of that package of bills, counties would still receive the liquor tax, but would be limited to receiving only that amount that was collected in their county. Currently the liquor taxes collected in Oakland, Macomb and Wayne counties are distributed to the rest of the counties. In essence, the liquor taxes collected in those three counties have subsidized the amounts to the rest of the state. In FY 2015, those 80 counties are receiving approximately 200 percent of the liquor taxes actually paid in their jurisdictions. For FY16, Treasury says, “The 80 ‘out-state’ counties will receive 101 percent of the FY 15 liquor tax collections in their county. Macomb, Oakland, and Wayne share 101 percent of the FY 15 liquor tax collections in the three counties, which is estimated to be a slight increase compared to their estimated FY 15 distribution. Macomb and Oakland counties get a portion of the liquor taxes collected in Detroit.” To see the county-by-county figures, click here.